What happens if a Cool Binz franchisee's vehicle is repossessed and they do not have a replacement that meets Cool Binz standards?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
to cover a check or EFT payment to us three (3) or more times within any 12-month period or you fail to achieve minimum sales for three (3) consecutive months.
C. TERMINATION IF NOT CURED.
We have the right to terminate this Agreement if any of the following defaults remains uncured after your receipt of a default notice from us, and if such defaults are not cured.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on their vehicle, resulting in repossession, and does not have a replacement vehicle that meets Cool Binz's standards to operate the business, Cool Binz has the right to terminate the Franchise Agreement. Cool Binz must provide a default notice, and the franchisee has a limited time to correct the issue. Unless otherwise specified, the franchisee has thirty (30) days to cure the default after receiving the notice.
Maintaining a vehicle that meets Cool Binz's standards is crucial for franchisees. The FDD specifies that vehicle standards are included in the Operations Manual and cover aspects like type, model, color, supplier, trademark representation, and appearance, including no rust or body damage. Vehicles must be maintained in "good" condition as defined by KELLY BLUE BOOK, meaning they should be free of major defects with only minor blemishes to the paint, body, and interior, and minimal rust. Franchisees must also submit photos of all vehicles used in connection with the Cool Binz Business.
This termination clause highlights the importance Cool Binz places on franchisees maintaining operational standards. The ability to operate the business depends on having an approved vehicle. Franchisees should ensure they have a plan to secure a replacement vehicle quickly if repossession is a risk. Failure to do so can lead to the termination of the franchise agreement, resulting in the loss of the business and associated investment.